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You're probably right, in that the emails being compromised is most likely. How did they hack the emails tho ?
Understand, it's not out of bitchiness or calousness or anything. But if you don't understand how it happened how do you know it won't happen again ?
From a societal standpoint, you have the following problem : domain name registry. You could address it two ways : either
1) as it's done now, customer's responsibility to keep passwords safe, should they fail, there is no recourse or
2) registrar's responsibility to keep passwords safe, should they fail, they are liable.
You can't ask somebody to be liable for something they do not control. And if you make the registrars do too much support in cases like this, it will just raise the bill all around. Which is why I say they shouldn't do anything.
Sure the thief is responsible for theft, at least in theory. But I don't know if you've ever lived in NY. Practically, you need better locks.
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